Cost of living protests gains ground in Africa

In recent weeks, Africa has been rocked by a wave of youth-led demonstrations spurred by the high cost of living crisis and governance issues. Protests have erupted in countries such as Kenya, Uganda, and Nigeria, with Ghana also on the brink before a court order halted planned demonstrations. Analysts warn that if drastic action is not taken, more countries could join the movement, voicing their discontent over rising inflation and the inability to afford basic necessities. To delve deeper into the root causes and potential solutions of these protests, John Gatsi, Dean of the University of Cape Coast School of Business, and Femi Oladehin, a Partner at Argentil Capital Partners, engaged in a riveting discussion on CNBC Africa. Mr. Oladehin highlighted the economic challenges that have been brewing on the continent, exacerbated by the disruptions caused by the COVID-19 pandemic. African economies were starting to show signs of recovery pre-pandemic, but the supply chain disruptions and liquidity overhangs during COVID have led to staggering inflation rates, soaring food prices, and currency devaluation. Countries like Nigeria have experienced significant economic fallout, with protests erupting due to the mounting pressure on the population. Mr. Oladehin also raised concerns about governments using the judiciary to stifle the right to protest, emphasizing the need to address the trust deficit between the people and the government. Shifting the spotlight to Ghana, Professor Gatsi analyzed the judiciary's role in mediating between protesters and the government. He noted that historical tensions between citizens, the police, and the government have often resulted in legal intervention to prevent protests. Despite temporary halts, demonstrations tend to resurface as citizens voice their grievances against corruption, high food prices, unemployment, and lack of opportunities. Ghana's experience from previous protests, coupled with the current wave sweeping through Africa, underscores the urgent need for governments to engage with citizens transparently and address systemic issues. Both guests underscored the importance of strategic planning and policy interventions to tackle the root causes of the demonstrations. Mr. Oladehin stressed the need for governments to demonstrate sincerity in their efforts to address economic challenges and reduce corruption. He highlighted the critical role of foreign investors and the importance of stability in creating an attractive investment climate. Prof. Gatsi emphasized Ghana's proactive approach to economic policies, citing the 24-hour economy proposal as a means to boost production, create jobs, and stimulate growth. As protests continue to unfold, the focus remains on how governments across Africa will navigate the complex terrain of economic turmoil, social unrest, and governance crises. The youth-led demonstrations serve as a stark reminder of the pressing issues facing the continent and the imperative for meaningful reforms to uplift the lives of ordinary citizens. The coming days will test the resilience and responsiveness of African governments as they grapple with balancing economic stability, public demands, and the quest for a brighter future for all.